Reviewed by Ed Dobson, President, Traders Press, Inc.


I find few things more gratifying than reading a book that is intelligently written and imparts practical knowledge on the difficult task of extracting profits from the marketplace. Perry Kaufman's Smarter Trading rates high on the short list of books that I would place in this category. Two books, which I have previously reviewed and which shall remain nameless, struck me as very intelligently written, yet they taught me nothing that I felt would prove to be practical for use in trading Euros or soybeans next week. Two others, Gallacher's Winner Take All (now, unfortunately, out of print) and Elder’s Trading for a Living, stand out as two of my own favorites and are among my standard recommendations to new traders.

By Vincent Troncone of Pennies from Heaven, The Market Reversal Report and Vindicator*

Leonardo Pisano Fibonacci was an Italian mathematician who, centuries ago, discovered a pattern that occurs naturally throughout our world. This pattern is exhibited in the behavior of stock and commodities markets to some extent as well.

Fibonacci forecasting is certainly nothing new or something I created, but it is simple and tends to work well when applied properly.

In the markets, this relationship is expressed in price. Basically, the Fibonacci Method states that commodity / stock prices will increase or decrease at specific ratios times the current wave of market price action. We will use the ratio of 1.618 for our application here.

By Kathy Lien, Chief Strategist of DailyFX.com*
Posted: July 11, 2008

One of the most popular ways to trade currencies is to try to pick tops and bottoms. Although many FX experts, including me, stress the effectiveness of trend trading in the currency market, fading a trend tempts many people into what often becomes a frustrating endeavor.

A perfect example is the EUR / USD, which first looked as though it could top out at 1.45 but then moved on to hit a high just shy of 1.60. Countless numbers of FX traders have tried to fade this move, but a quick glance at the charts shows that, even though some profit was made fading the 2-year uptrend, far more money was made by traders who simply stayed with the trend.